The Invisible Hand (Of The US Government) in Financial Markets

[chlamor]

The Invisible Hand
(of the U.S. Government)
in Financial Markets
by Robert Bell
April 3, 2005

Summary: The U.S. government is manipulating all major U.S. financial markets—stocks, treasuries, currencies. This article shows how it is possible and how it is done, why it is done, who specifically is doing it, when they do it, and where they get the money to do it.

Most people probably believe that the major capital markets in the U.S. are basically true markets with, occasionally, maybe very occasionally, a little bit of rigging here and there. But evidence shows that the opposite is the case—the rigging is fundamental with a little bit of true markets here and there. I have discussed how this works concerning U.S. and some other stock markets in an earlier article.<1> Here I will primarily discuss the rigging of currency and U.S. Treasury markets.

<snip>

The two main sources of money for U.S. Treasuries are the central banks of Japan and China. Japan held about $715 billion in U.S. Treasuries, as of November 2004, and China held about $191 billion.<3> All the other nations’ central banks hold altogether, about the same amount again, roughly another trillion.

As the total of all obligations is about $4 trillion, two central banks obviously hold about one quarter of the total. They are in the position to pump or dump the Treasury market all by themselves. They can sell what they have or simply stop buying when the Treasury sells.

Since the money comes from a handful of foreign central banks, the possible rigging of the Treasury market equals the possible rigging of the foreign exchange markets. These central banks have to buy dollars before they buy Treasuries. Even Alan Greenspan has acknowledged that the two go together, admitting that Asian central banks “may be supporting the dollar and U.S. Treasury prices somewhat.”<4>

http://www.financialsense.com/editorials/reality/2005/0403.html

[scarletwoman]

1. Wow, I LOVE your graphic!

I haven't read the article at the link yet -- however, I just had to post right away to compliment you on that awesome graphic! :toast:

sw

[whistle]

2. This really makes a great case for the president's proposed...

...privitization of social security, doesn't it. We get 150million American workers all vested in private retirement accounts and a handful of rich fat cats from around the world manipulate market corrections and recessions whenever they feel greedy enough to stick it to the suckers, then let everyone work like crazy recouping their losses until the next greedy dip into our hard earned savings. No thanks. The graphic illustration tells the entire story.

Uhmmm, copyrighted 1911, why can't our political cartoonists come up up with equally telling illustrations today? Could it be that by just being elevated one level above the oppressed in tier one, that have already been blinded to the truth?

[teryang]

3. Don't confuse me with the facts

It's a free market damn it!

The impact of options contracts really leverage the use of the various schemes to make large amounts of capital available to manipulate markets.

I've been following the debate on gold market manipulation. It's hard to believe that market manipulation critics are regarded as "paranoid conspiracy theorists." As a very visible barometer of the psychological perception of the value of the dollar, gold's value must be held in check. I don't use the phrase "at all costs" because it is a relatively small market readily manipulated by central bankers. When the economic news is particularly bad, the gold price drops considerably when US markets open. The exact opposite of what you'd expect.

Does anyone know where I could "lease" several hundred ounces of gold at one percent?